Keenjhar Lake Resort Project - Sindh Board Of Investment ...

14.2.4.3 Commercial Debt & Equity
The balance finance for the Project is expected to be funded in equal proportions through the
commercial debt and developer’s equity, i.e. 50:50.
The commercial debt is envisaged to be raised @ the interest rate of 15% per annum for 10 years
period, with a grace period of 4 years, i.e. the development phase. The land would be available for
mortgage to secure funding from the commercial lenders while all the receipts and payments in respect
of the development will be routed through a payment security mechanism, i.e. Escrow Account.
It is expected that the total external funding in the form of commercial debt would include:
► Long term debt for PKR 1,701m; and
► Short term borrowing with a limit of PKR 500m.
14.3 Operational Period Cash Flows
Figures in PKR Millions
Operational Period
Year 1 Year 2 Year 3 Year 4 Year 5
Operating Inflows
Farmhouse proceeds – residual 574.8 - - - -
Resort and Hospitality 845.4 934.9 1,060.0 1,169.1 1,309.4
Convention Centre 79.1 84.7 90.6 96.9 105.8
Golf Course 24.8 159.9 165.5 171.8 313.0
1,524.1 1,179.5 1,316.1 1,437.8 1,728.2
Operating Outflows
Maintenance costs (43.3) (46.7) (50.5) (54.5) (58.9)
Operating costs (353.0) (399.7) (446.6) (487.2) (562.7)
Income taxes (4.7) (5.9) (6.6) (7.2) (106.6)
(401.0) (452.3) (503.7) (548.9) (728.1)
Other Inflows/ (Outflows)
Working capital (85.7) 84.4 (0.2) (0.2) (1.8)
Loan repayments (248.8) (170.1) (127.6) (85.0) (42.5)
Financial charges (283.5) (283.5) (283.5) (283.5) (283.5)
GoS deferred payment facility (421.7) - - - -
(1,039.7) (369.1) (411.3) (368.7) (327.8)
Cash flow for the year 83.4 358.0 401.2 520.1 p 672.2
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Keenjhar Lake Resort Project - Project Information Memorandum